London Plan 2011 PDF 1 MB - Lambeth Council

The London Plan July 2011 – RTF version
para 3.61), provided to specified eligible households whose needs are not
met by the market and should:
a meet the needs of eligible households including availability at a cost
low enough for them to afford, determined with regard to local
incomes and local house prices
b include provisions for the home to remain at an affordable price for
future eligible households, or
c if these restrictions are lifted, for the subsidy to be recycled for
alternative affordable housing provision
3.61 The definition of affordable housing set out above applies national guidance
to the circumstances of the capital and should be used for planning purposes
in London. Within this overarching definition:
• social rented housing should meet the criteria outlined in Policy 3.10
and be rented housing owned and managed by local authorities or
registered social landlords, for which guideline target rents are
determined through the national rent regime or be provided by other
bodies under equivalent rental arrangements to the above, agreed with
them as a condition of public sector investment grant, and for which
guideline target rents are determined through the national rent regime
• intermediate housing should meet the criteria outlined in Policy 3.10
and be available at prices and rents above those of social rent, but below
local market prices or rents. New intermediate homes should be
affordable to households whose annual income is in the range £18,100–
£61,400. For homes with more than two bedrooms, which are
particularly suitable for families, the upper end of this range will be
extended to £74,000. These figures will be updated annually in the
London Plan Annual Monitoring Report.
Market housing is defined separately as private housing for rent or sale
where the price is set in the open market.
3.62 To take more effective account of the PPS 3 requirement to have regard to
local incomes and house prices in setting the upper level of the intermediate
housing eligibility threshold, it must be recognised that lower quartile house
prices in London are 70 per cent higher than in the country as a whole, 31
per cent higher than in the South East region and 50 per cent higher than in
the East of England 56 . Increased provision of intermediate housing is one of
the ways in which the supply of affordable housing can be expanded. The
Mayor will work with the Boroughs and other delivery and funding agencies
to develop understanding and provision of a range of relevant products,
particularly for families. For the purposes of the paragraph 3.61 definition,
qualifying prices and rents should be set locally to recognise the individual
characteristics of local housing markets. However, in order to recognise
strategic housing needs, the Mayor will seek to ensure that new intermediate
homes are affordable to households whose annual income is in the range
£18,100-£61,400. For family homes (see Glossary) the upper end of this
range will be extended to £74,000. These figures will be up-dated annually
in the London Plan Annual Monitoring Report.
56 Mayor of London LHS 2010 ibid
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